DAVY VIEW

This week will see a rate cut by the European Central Bank (ECB) on Thursday (October 17th). On Wednesday (October 16th), Irish residential property prices data for August look poised to push year-on-year (yoy) growth back to double digits. We will look to transactions data for clues on supply of new dwellings in Q3, which grew strongly by over 50% yoy in July. However, pent-up demand is very strong and lower interest rates will provide an additional boost.